TBI, the group that operates Luton, Belfast International and Cardiff airports, has reported a 26% rise in profits.

The increased profits come despite the turmoil surrounding the airline sector since the 11 September terrorist attacks in the United States.

TBI's success is testimony to the ability of low-cost carriers such as Luton-based Easyjet to continue to attract new customers.

Passenger numbers at TBI's UK airports rose 7% to nearly 12 million people during the 12 months to 31 March.

Recent figures from the Civil Aviation Authority show the number of passengers passing through Heathrow fell by 6% last year, while Gatwick lost 3% of its business.

Rosy future

"2001 was a watershed for the aviation industry, and the beginning of a different dynamic in air travel," said TBI's chief executive Keith Brooks.

"I see the coming year as a period of relative consolidation followed by a very bright and encouraging future in the years beyond," he said.

TBI's pre-tax profits rose to �186m from �139m the previous year.

The firm, which also operates three Bolivian airports, will now pay a full year dividend of 2.3 pence.

Its share price had gained 2.5% to 61.25p by 0930 GMT.